With insider buying activity being at its lowest level in almost a year, I am starting to put more weight on stocks that are still seeing insider purchases. Here are two tech stocks that recently saw insider buying in February. Both are growing revenues at a double digit rate and seem worthy of consideration by growth investors.
Akamai Technologies (NASDAQ:AKAM) provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally.
4 reasons AKAM could be a solid growth play at $38 a share:
- Two insiders bought almost $3mm in new shares in February. They were the first insider purchases since June of last year.
- The company has grown revenue at just under a 15% CAGR over the last half decade. Analysts expect sales increases in the low double digits for both FY2013 and FY2014 as well. The stock sells for a five year projected PEG near 1 (1.3)
- Akamai has beat earnings estimates for the last six straight quarters.
- The company has a solid balance sheet with over $400mm in net cash on the books.
Calix, Inc. (NYSE:CALX) provides broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers to connect to their residential and business subscribers.
4 reasons CALX has upside from under $9 a share:
- A director bought $200K in new shares in February. This follows other insider purchases in September and November.
- Earnings are on the upswing. The company earned just 15 cents a share in FY2012. However, analysts project it will make 40 cents a share in FY2013 and over 60 cents a share in FY2014.
- Analysts expect almost 25% revenue growth this year, the company has easily beat earnings estimates the last two quarters and consensus earnings estimates for FY2014 have ticked up in the last month.
- The company has a solid balance sheet with approximately 10% of its current market capitalization in net cash.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CALX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.